[PART I. FINANCIAL INFORMATION](index=8&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis [Item 1. Condensed Consolidated Financial Statements (unaudited)](index=8&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) For the three months ended March 31, 2025, Light & Wonder reported total revenues of $774 million, a 2% increase year-over-year, with net income flat at $82 million and diluted EPS rising to $0.94 [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) Revenue for Q1 2025 increased to $774 million, driven by services revenue, while operating income rose slightly to $170 million and net income remained stable at $82 million Consolidated Statements of Operations Highlights (Q1 2025 vs Q1 2024) | Metric | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | | :--- | :--- | :--- | | **Total Revenue** | **$774** | **$756** | | Services Revenue | $527 | $517 | | Products Revenue | $247 | $239 | | Operating Income | $170 | $165 | | Net Income | $82 | $82 | | Diluted EPS | $0.94 | $0.88 | [Consolidated Statements of Comprehensive Income](index=9&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income for Q1 2025 significantly increased to $125 million, primarily due to a $48 million foreign currency translation gain Comprehensive Income (Q1 2025 vs Q1 2024) | Metric | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | | :--- | :--- | :--- | | Net Income | $82 | $82 | | Foreign currency translation gain (loss) | $48 | $(29) | | **Total Comprehensive Income** | **$125** | **$59** | [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets slightly increased to $5.455 billion, while cash and cash equivalents decreased to $134 million and long-term debt rose to $3.884 billion Key Balance Sheet Items | Metric | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :--- | :--- | :--- | | Cash and cash equivalents | $134 | $196 | | Total Assets | $5,455 | $5,421 | | Long-term debt, excluding current portion | $3,884 | $3,847 | | Total Liabilities | $4,835 | $4,785 | | Total Stockholders' Equity | $620 | $636 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities increased to $185 million in Q1 2025, while significant cash was used in financing activities, primarily for $166 million in stock repurchases Cash Flow Summary (Q1 2025 vs Q1 2024) | Metric | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $185 | $171 | | Net cash used in investing activities | $(62) | $(71) | | Net cash used in financing activities | $(171) | $(65) | | Purchase of L&W common stock | $(166) | $(25) | | (Decrease) increase in cash, cash equivalents and restricted cash | $(45) | $32 | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the company's three reportable segments, a pending $850 million acquisition, segment performance, $3.9 billion total debt, and $167 million in share repurchases - The company entered into an agreement to acquire Grover Charitable Gaming for **$850 million** in cash at closing, plus up to **$200 million** in contingent payments, with the transaction expected to close in Q2 2025[36](index=36&type=chunk) Segment Revenue and AEBITDA (Q1 2025 vs Q1 2024) | Segment | Revenue Q1 2025 (in millions) | Revenue Q1 2024 (in millions) | AEBITDA Q1 2025 (in millions) | AEBITDA Q1 2024 (in millions) | | :--- | :--- | :--- | :--- | :--- | | Gaming | $495 | $476 | $254 | $232 | | SciPlay | $202 | $206 | $64 | $62 | | iGaming | $77 | $74 | $27 | $25 | - Total long-term debt outstanding had a face value of **$3.944 billion** as of March 31, 2025, and the company upsized its revolving credit facility from **$750 million** to **$1.0 billion** in February 2025[66](index=66&type=chunk)[67](index=67&type=chunk) - During Q1 2025, the company repurchased approximately **1.9 million shares** of common stock for an aggregate cost of **$167 million** (including excise tax) under its **$1.0 billion** share repurchase program[82](index=82&type=chunk) - As of March 31, 2025, the company had accrued liabilities of **$89 million** for all legal matters, with an estimated possible loss for certain contingencies up to approximately **$13 million** in excess of accrued liabilities[87](index=87&type=chunk)[88](index=88&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported the 16th consecutive quarter of year-over-year consolidated revenue growth, driven by the Gaming segment, alongside strategic acquisitions and capital actions [Business Overview](index=30&type=section&id=Business%20Overview) The company achieved its 16th consecutive quarter of year-over-year revenue growth, marked by strategic actions including a $1.0 billion revolver upsize, the $850 million Grover Charitable Gaming acquisition, and $167 million in share repurchases - The company delivered its **16th consecutive quarter** of year-over-year consolidated revenue growth[118](index=118&type=chunk) - Announced the strategic acquisition of Grover Charitable Gaming for an upfront consideration of **$850 million**, expected to close in Q2 2025[119](index=119&type=chunk) - Amended the LNWI Credit Agreement, upsizing the revolving credit facility to **$1.0 billion** from **$750 million** and extending its maturity[118](index=118&type=chunk) [Consolidated Results](index=31&type=section&id=Consolidated%20Results) Consolidated revenue grew 2% year-over-year to $774 million, primarily driven by the Gaming segment, while operating expenses increased due to restructuring and acquisition costs Consolidated Results Summary (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | Variance (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $774 | $756 | $18 | 2% | | Total operating expenses | $604 | $591 | $13 | 2% | | Operating income | $170 | $165 | $5 | 3% | | Net income | $82 | $82 | $0 | 0% | - Restructuring and other costs increased by **$14 million** (**233%**) to **$20 million**, primarily due to charges related to the discontinuation of iGaming Live Casino operations (**$7 million**) and costs associated with the Grover Charitable Gaming acquisition (**$5 million**)[127](index=127&type=chunk)[132](index=132&type=chunk) [Reportable Business Segment Results](index=33&type=section&id=Reportable%20Business%20Segment%20Results) The Gaming segment led growth with a 4% revenue increase and expanded AEBITDA margin, while SciPlay revenue declined slightly despite improved monetization, and iGaming revenue grew despite discontinuing Live Casino operations Gaming Segment KPIs (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $495 | $476 | 4% | | AEBITDA Margin | 51% | 49% | +2pp | | U.S. & Canada installed base | 34,501 units | 31,534 units | 9% | | U.S. & Canada new unit shipments | 5,769 units | 4,437 units | 30% | SciPlay Segment KPIs (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $202 | $206 | (2)% | | AEBITDA Margin | 32% | 30% | +2pp | | ARPDAU | $1.06 | $1.01 | 5% | | AMRPPU | $116.96 | $113.93 | 3% | - iGaming revenue increased **4%** to **$77 million**, driven by momentum in North America, with wagers processed through the Open Gaming System increasing to **$25.2 billion**, despite the company discontinuing its Live Casino operations[169](index=169&type=chunk)[166](index=166&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company had total liquidity of $1.084 billion, supported by $185 million in operating cash flow, with significant cash used for share repurchases and the pending Grover Charitable Gaming acquisition Liquidity Position | Component | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :--- | :--- | :--- | | Cash and cash equivalents | $134 | $196 | | Available Revolver Capacity | $950 | $740 | | **Total Liquidity** | **$1,084** | **$936** | - Net cash from operating activities increased to **$185 million** in Q1 2025 from **$171 million** in Q1 2024[182](index=182&type=chunk)[183](index=183&type=chunk) - Net cash used in financing activities increased to **$171 million**, driven by **$166 million** in share repurchases, partially offset by net borrowings of **$40 million** on the revolving credit facility[28](index=28&type=chunk)[185](index=185&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk on its $2.2 billion variable-rate debt, partially mitigated by $700 million in interest rate swap contracts - As of March 31, 2025, the company had **$2.2 billion** of variable rate debt obligations[189](index=189&type=chunk) - A hypothetical **1%** change in interest rates would result in an approximate **$22 million** change in annual interest expense[189](index=189&type=chunk)[190](index=190&type=chunk) - The company utilizes interest rate swap contracts with a total notional amount of **$700 million** to hedge a portion of its variable rate debt exposure, maturing in April 2027[71](index=71&type=chunk)[191](index=191&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's disclosure controls and procedures were deemed effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[193](index=193&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[194](index=194&type=chunk) [PART II. OTHER INFORMATION](index=40&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, and details on equity security sales and use of proceeds [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 15 in the Notes to Condensed Consolidated Financial Statements for a detailed discussion of the company's ongoing legal proceedings - For a detailed discussion of legal proceedings, refer to Note 15 of the Condensed Consolidated Financial Statements[195](index=195&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) The company highlights that unfavorable economic conditions, trade tariffs, and geopolitical instability could adversely affect its business and operations - Unfavorable economic conditions, including inflation, rising interest rates, and new tariffs, may reduce discretionary spending and negatively affect business results[197](index=197&type=chunk) - Changes in international trade policy, particularly tariffs on goods from China and Asia, may increase costs and disrupt the supply chain for the Gaming business[204](index=204&type=chunk)[205](index=205&type=chunk) - Political, economic, and military conditions in Israel could adversely affect SciPlay's personnel and operations in that region[201](index=201&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, the company repurchased 1.9 million shares of common stock for $166 million, with $547 million remaining available under the repurchase program Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Total Cost (in millions) | | :--- | :--- | :--- | :--- | | Jan 2025 | 1.2 million | $87.58 | $106 | | Feb 2025 | 0.7 million | $92.43 | $60 | | Mar 2025 | 0 | $109.83 | $0 | | **Total** | **1.9 million** | **$87.37** | **$166** | - As of March 31, 2025, **$547 million** remained available for purchase under the company's share repurchase program[209](index=209&type=chunk)

Light & Wonder, Inc. Reports First Quarter 2025 Results 16th Consecutive Quarter of Year-Over-Year Consolidated Revenue Growth with Expanded Margins Driving Strong Cash Flow Generation Added 2,900+ North American Gaming Operations Units Year-Over-Year and ~500 Units Sequentially Returned $166 million of Capital to Shareholders through Share Repurchases during the Quarter Strategic Acquisition of Grover Gaming's Charitable Gaming Business on Schedule LAS VEGAS — May 7, 2025 — Light & Wonder, Inc. (NASDAQ and ...

Core Insights - Light & Wonder (LNW) is expected to report quarterly earnings of $1.17 per share, reflecting a 25.8% increase year over year [1] - Analysts forecast revenues of $808.58 million, indicating a 7% year-over-year growth [1] - There have been no revisions in the consensus EPS estimate over the last 30 days, suggesting stability in analysts' forecasts [1] Revenue Estimates - Revenue from SciPlay is projected to reach $222.59 million, representing an 8.1% increase year over year [3] - Revenue from Gaming is expected to be $511.28 million, showing a 7.4% increase from the previous year [4] - Revenue from iGaming is estimated at $81.40 million, indicating a 10% increase year over year [4] AEBITDA Estimates - AEBITDA for Gaming is anticipated to be $254.30 million, up from $232 million in the same quarter last year [4] - AEBITDA for iGaming is expected to reach $26.78 million, compared to $25 million in the same quarter last year [5] - AEBITDA for SciPlay is projected at $69.06 million, an increase from $62 million in the same quarter last year [5] Stock Performance - Over the past month, shares of Light & Wonder have increased by 18.3%, outperforming the Zacks S&P 500 composite, which rose by 11.5% [6] - Currently, LNW holds a Zacks Rank 3 (Hold), indicating that its performance may align with the overall market in the near future [6]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Light & Wonder, Inc. due to allegations of materially misleading business information issued to the investing public [1]. Group 1: Legal Actions and Implications - Shareholders who purchased Light & Wonder securities may be entitled to compensation through a class action lawsuit without any out-of-pocket fees [2]. - A preliminary injunction was granted to Aristocrat Technologies against Light & Wonder, prohibiting the sale or commercialization of the "Dragon Train" product, which allegedly infringes on Aristocrat's intellectual property [3]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company at the time and being ranked No. 1 for the number of settlements in 2017 [4]. - The firm has recovered hundreds of millions of dollars for investors, securing over $438 million in 2019 alone [4].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Light & Wonder, Inc. due to allegations of materially misleading business information [1] Group 1: Legal Actions and Implications - Shareholders who purchased Light & Wonder securities may be entitled to compensation through a class action without any out-of-pocket fees [2] - A preliminary injunction was granted to Aristocrat Technologies against Light & Wonder, prohibiting the sale or commercialization of the "Dragon Train" product, which allegedly infringes on Aristocrat's intellectual property [3] - Following the news of the injunction, Light & Wonder's stock experienced a significant decline of 19.49% on September 24, 2024 [3] Group 2: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company at the time [4] - The firm was ranked No. 1 by ISS Securities Class Action Services for the number of securities class action settlements in 2017 and has consistently ranked in the top 4 since 2013 [4] - In 2019, the firm secured over $438 million for investors, showcasing its capability in recovering significant amounts for its clients [4]

Company Overview - Light & Wonder, Inc. is a leading developer of technology-based products and services for the gaming, social, and digital gaming industries globally, having changed its name from Scientific Games Corporation on April 28, 2022, to align with its vision of becoming a leading cross-platform global games company [11]. Zacks Rank and Style Scores - Light & Wonder is currently rated as a 3 (Hold) on the Zacks Rank, with a VGM Score of A, indicating a solid position in the market [12]. - The company has a Growth Style Score of B, forecasting a year-over-year earnings growth of 9.3% for the current fiscal year, supported by three analysts revising their earnings estimates higher in the last 60 days [12]. - The Zacks Consensus Estimate for Light & Wonder has increased by $0.10 to $5.76 per share, and the company boasts an average earnings surprise of 29.1% [12]. Investment Potential - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, Light & Wonder is positioned as a potential top pick for growth investors [13].

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Group 1 - The company specializes in analyzing restaurant stocks in the U.S. market, covering various segments such as QSR, fast casual, casual dining, fine dining, and family dining [1] - Advanced analytical models and specialized valuation techniques are employed to provide detailed insights and actionable strategies for investors [1] - The founder actively engages in academic and journalistic initiatives, contributing to institutions that promote individual and economic freedom [1] Group 2 - The company has no stock, option, or similar derivative position in any of the companies mentioned, nor plans to initiate any such positions within the next 72 hours [2] - The article expresses the author's own opinions and is not receiving compensation from any company mentioned [2] - Seeking Alpha clarifies that past performance is not a guarantee of future results and that no investment recommendations are being made [3]

Core Insights - Light & Wonder (LNW) reported strong fourth-quarter 2024 results, with both revenue and net income exceeding expectations, showcasing the company's robust portfolio and business model [1][2][3] Financial Performance - Net income for Q4 2024 was $107 million or $1.2 per share, up from $66 million or 73 cents per share in Q4 2023, driven by revenue growth and asset sales [2] - Total revenues in Q4 2024 reached $797 million, an increase from $770 million in the prior-year quarter, surpassing the consensus estimate of $795 million [3] - For the full year 2024, LNW reported total revenues of $3.2 billion, up from $2.9 billion in 2023 [3] Revenue Breakdown - Services revenues increased to $532 million from $515 million year-over-year, while product sales rose to $265 million from $255 million [4] - Gaming revenues were $515 million, reflecting a 4% year-over-year increase, supported by strong sales of Gaming Machines and operations [4] - SciPlay revenues remained stable at $204 million, with a 6% increase in average revenue per daily active user [5] - iGaming revenues grew to $78 million, an 11% increase from the previous year, driven by momentum in North America and Europe [5] Operational Metrics - Non-GAAP consolidated AEBITDA was $315 million, up from $302 million year-over-year, with an AEBITDA margin remaining flat at 39% [6] - Cash generated from operating activities in 2024 was $632 million, compared to $590 million in 2023, with Q4 generating $202 million [7] Liquidity Position - As of December 31, 2024, LNW had $196 million in cash and cash equivalents, with long-term debt totaling $3.84 billion [7]